Almost Third of Small Businesses Think a Business Plan is Irrelevant

Many small and medium enterprises do not have a formal business plan in place and believe a plan is “not necessary”

Almost a third (29%) of small and medium sized businesses don’t have a formal business plan with 43% asserting that a plan is not important, according to the latest Close Brothers Business Barometer (CBBB).

Of the remaining number of business owners without a plan, 20% say that they prefer to keep an informal plan in their head and 15% believe that, although a plan isnot completely irrelevant, an official business strategy is not a priority.

The survey also found that, of the small businesses who have a formal strategy in place, 14% only review their business plan every two to five years.

“Planning is key to any business throughout its lifecycle. A formal plan can be an extremely valuable tool for managing and growing a business as it allows a company to recognise its strengths and weaknesses and ensure they have appropriate plans in place.”

“Organisations of all shapes and sizes may benefit from a business plan however, a plan is only useful if it is reviewed regularly to ensure that it meets the current and future needs of the business. Therefore it’s sensible to review current performance on a regular basis and identify opportunities for improvement and growth.”

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